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RIO.US to acquire ALTM.US for US$6.7bn in a premium to bet on battery metals

AInvestWednesday, Oct 9, 2024 3:00 am ET
1min read

Rio Tinto(RIO.US) has secured board approval for its $6.7bn cash offer for Arcadium Lithium(ALTM.US), a move that will help the world's second-largest miner become a major producer of key battery materials.

Rio said on Wednesday it would pay $5.85 per share for Arcadium Lithium, a 90 per cent premium to its closing price on Oct 4 before Rio confirmed its bid.

Jakob Stausholm, Rio's chief executive, said in a statement: “The acquisition of Arcadium Lithium is a significant step forward in Rio Tinto's long-term strategy to create a world-class lithium business, alongside our leading aluminium and copper businesses, to provide the materials needed for the energy transition.”

The deal, Rio's largest since its $38bn acquisition of Alcan in 2007, comes as lithium prices have plunged, dragging down shares of lithium companies such as Arcadium.

Rio said the transaction had been unanimously approved by both boards and was expected to close in the middle of 2025.

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